Sprout social executive chair sells shares worth over $1.38 million

Howard Justyn Russell, Executive Chair of Sprout Social, Inc. (NASDAQ:SPT), reported significant stock transactions on December 12, 2024. Russell sold a total of 40,000 shares of Class A Common Stock, generating proceeds of approximately $1,382,886. The shares were sold at prices ranging from $34.467 to $34.975 per share. The sales come as the stock, currently trading at $33.93, shows strong momentum with an 8.02% return over the past week, though InvestingPro analysis indicates the stock may be in overbought territory.

In addition to the sales, Russell executed several other transactions. These included the conversion of 20,000 shares of Class B Common Stock into Class A Common Stock, as well as a bona fide gift of 20,000 shares to the JRH Revocable Trust, of which he serves as the sole trustee. Another gift transaction involved 39,719 shares on December 13, 2024, also transferred to the JRH Revocable Trust. Sprout Social, with its impressive 77.31% gross profit margin and $1.96 billion market capitalization, continues to draw investor attention.

Following these transactions, Russell's direct and indirect holdings in Sprout Social have been adjusted accordingly. Get deeper insights into SPT's valuation and 11 additional exclusive ProTips with a subscription to InvestingPro.

In other recent news, Oppenheimer's tenth annual fourth-quarter IT spending strength survey highlighted a constructive outlook for IT budget growth through 2025. The survey results led to positive adjustments for Agilysys (NASDAQ:AGYS), Inc. and ServiceNow (NYSE:NOW), Inc. with their price targets raised by Oppenheimer. However, the survey results were less optimistic for Sprout Social, Inc., which experienced a lower price target and estimates.

Scotiabank (TSX:BNS) initiated coverage on Sprout Social Inc (NASDAQ:SPT). with a Sector Perform rating and set a price target of $28.00. In recent developments, Sprout Social surpassed $100 million in Q3 revenue for the first time, marking a 20% increase year-over-year. The company's Q4 2024 revenue is projected to be between $106.3 million and $107.1 million.

During its Q3 2024 earnings call, Sprout Social announced it had surpassed $100 million in quarterly revenue for the first time. The company also revealed a 31% year-over-year growth in Remaining Performance Obligations (RPO) to $220.7 million. Despite the broader macroeconomic challenges, Sprout Social remains optimistic about its growth trajectory.

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